Former military sites in South Carolina are being converted into new community hubs, and a new state law is hastening this process by permitting financing to be utilized for affordable housing.
Governor Henry McMaster, state lawmakers, and local officials met at the former Charleston Naval Base this week to commemorate the new legislation’s adoption. The law strengthens the capacity of Tax Increment Financing (TIF) districts based on former military properties.
TIF districts allow local governments to invest in infrastructure improvements in neglected or abandoned neighborhoods. These initial investments are subsequently recovered with the additional property tax revenue generated by the future redevelopment.
The main change in the new law is that tax funds generated in TIFs at former military base locations can now be channeled expressly toward affordable housing development.
This legislation is viewed as critical for some of South Carolina’s fastest-growing communities. Reinvesting earnings locally can accelerate development and help to reach long-term community goals more quickly.
The modification took effect on July 1 and is currently applicable to the three former military base TIFs in the state.
The Charleston Naval Base Complex
The former Myrtle Beach Air Force Base
Savannah River Site Redevelopment Authority
The former Charleston Naval Base, which was the state’s largest civilian employer until its closure in 1996, is a perfect example of a region that will gain from the update. The new law is expected to not only enhance the state’s military ties and fund new infrastructure, but also generate housing options for families and companies around the region.
